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Valpak Direct Marketing Systems, Inc. ("Valpak") is the largest cooperative direct mail envelope company in the US and is an indirect subsidiary of Atlanta-based Cox Enterprises, Inc. who was named by Advertising Age as the 5th largest media company in the U.S. Almost 200 franchises in the U.S. and Canada mail over 22 billion coupons to more than 500 million households annually.
Franchisor Background
Year Established: 1968
Franchising Since: 1988
Operating Units: |
| Franchised Units: | 185 | | 98.4% | | |
| Company-Owned Units: | 3 | | 1.6% | | |
| | ______ | | _____ | | |
| Total Operating Units: | 188 | | 100% | | |
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Geographic Distribution: |
| U.S.: | 169 | | 95.5% | | In 46 States |
| Canada: | 8 | | 4.5% | | In 4 Canadian Provinces |
| International: | 0 | | 0% | | In 0 Foreign Countries |
| | ______ | | _____ | | |
| Total: | 177 | | 100% | | |
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North America: |
| States/Provinces with the largest number of operating units: |
| Density | Units | | | | |
| 1. California | 17 | | 2. Florida | 27 | | 3. Virginia | 13 |
Registered in Following Registration States: California, Florida, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Oregon, Rhode Island, South Dakota, Virginia, Washington, Wisconsin, District Of Columbia
Financial Requirements
Investment: |
| Minimum Net Worth: | $150K |
| Cash Investment: | $75-150K |
| Total Investment: | $75-250K |
| Average Total Investment: | $163K |
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Fees: |
| Initial Franchise Fee: | $15-75.5K |
| Average Franchise Fee: | $45K |
| On-Going Royalty: | 0% |
| Average Royalty: | 0% |
| Advertising Fee: | 0% |
Average Number of Employees: Varies Full-time, 0 Part-time
Space Needs (in square footage):
Preferred Sites: Home-based
Other Sites: Office Based, Exec. Suite
Encourage Conversions? Yes
Earnings Claims Provided? Yes
Listed in the SBA Registry? No
Support and Training
| International Franchise Association: | Yes |
| Canadian Franchise Association: | Yes |
| Franchisee Association/Member: | Yes, Member |
| Size of Corporate Staff: | 100 |
| Site Selection Assistance? | Not Applicable |
| Lease Negotiation Assistance? | Not Applicable |
| Financial Assistance? | Yes, Indirect |
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Marketing Support: |
| Co-Op Advertising: | No |
| National Advertising: | Yes |
| Regional Advertising: | No |
| Local Advertising: | No |
| Marketing Materials: | Ad Slicks, Brochures, Catalogs, Direct Mailers, Emails, Promotional Items, Radio Ads, Site Signs, Television Ads, Trade Show Exhibits |
| Additional Services: | Marketing Research, Newsletter, Online Extranet, Sales Strategies |
| Other Marketing Support: | None Specified |
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On-Going Support: |
| Central Data Processing: | Included in Fees |
| Central Purchasing: | Not Applicable |
| Field Operation Evaluation: | Included in Fees |
| Field Training: | Included in Fees |
| Initial Store Opening: | Included in Fees |
| Inventory Control: | Not Applicable |
| Franchisee Newsletter: | Included in Fees |
| Regional or National Meetings: | Included in Fees |
| 800 Telephone Hotline: | Included in Fees |
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Training: |
| 1. Sales- Largo, FL | 2 Weeks | | 2. New Owner- Largo, FL & in territory | 2 Weeks | | 3. Coupon University | 4 Days |
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Franchisee Qualifications
| Ranked from 1 (unimportant) to 5 (important): |
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| Financial Net Worth: | 3 |
| General Business Experience: | 2 |
| Specific Industry Experience: | 1 |
| Formal Education: | 2 |
| Psychological Profile: | 3 |
| Personal Interview(s): | 4 |
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Minority Representation
Units Owned by Minorities: |
| African-American: | N/A |
| Asian-American: | N/A |
| Hispanic: | N/A |
| Native American: | N/A |
| Other: | N/A |
| Specific Minority: | N/A |
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Terms of Contract
| Term of Initial Contract: | 10 Year(s) |
| Term of Renewal Period: | 5 Year(s) |
| Passive Ownership: | Allowed, But Discouraged |
| Area Development Agreements? | No |
| Sub-Franchising Contracts? | No |
| Franchisees Allowed to Expand Within Territory? | Yes |
Expansion Plans
Projected New Units Over Next 12 months: 10-20
| U.S.: | Yes, All United States |
| Canada: | Yes, All Canada |
| Overseas: | No |
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